FROM EIR DAILY ALERT

Italian Coalition ‘Contract’ Is Declaration of War against EU and Its Austerity Policy

May 17, 2018 (EIRNS)—The draft government “contract” of the “Yellow-Green” coalition between the Five Stars Movement (M5S) and the Lega, published yesterday, is a declaration of war against the EU and its austerity policy. Although many key points are still open to be changed by the two coalition leaders, and President Sergio Mattarella might (ab)use his powers to erase anti-EU parts, the program is a clear signal that the era of unchallenged EU supremacism is finished. The City of London freaked out, and its mouthpiece the Financial Times opined that “the barbarians are inside Rome”!

The “contract” calls for a national bank for investments; a process leading to bank separation (Glass-Steagall); a “radical review” of the bail-in procedure; a reduction of EU “jurisdictions”; a review of EU treaties and single monetary policies; and for going back to the pre-Maastricht status.

It calls for separating both the capital investment budget and the sovereign assets purchased by the European Central Bank from the calculation of debt to GDP ratio (Maastricht parameters).

It calls for lifting constitutional provisions for a balanced budget, and for an “appropriate” use of deficit spending.

On foreign policy, it calls for an opening to Russia as a potential partner and for lifting the sanctions.

On economic policy, the contract promises to increase pensions and introduce a €780 monthly “basic income,” similar to Germany’s Hartz IV, and seeks to the upgrading of Italian ports—but it also calls for blocking the construction of the Turin-Lyon Corridor 3 high-speed railway, the only major infrastructure project Italy is currently building, and which is a key part of the Genoa terminus of the Maritime Silk Road. This reflects the anti-science mob which is unfortunately strong in the M5S.

Although the Lega and the M5S now have a “contract,” there is still a long way to go to form a government. They have to divvy up ministerial posts and come up with a candidate for Prime Minister, whom President Mattarella, who is pro-EU, must approve. The deadline for that has been set for Monday, May 21.

In response to a preliminary version of what was leaked to the media yesterday, there was a general freakout by the City of London and the mainstream media. Le Monde referred to it as “a deadly challenge to the EU.” The Financial Times ran an editorial, headlined “The Barbarians Are Inside Rome.”